BILL NUMBER: AB 872	CHAPTERED  09/29/99

	CHAPTER   572
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 28, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 7, 1999
	AMENDED IN SENATE   JUNE 17, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Alquist
   (Coauthors:  Assembly Members House, Knox, Kuehl, and Leach)
   (Coauthors:  Senators Figueroa and Rainey)

                        FEBRUARY 25, 1999

   An act to add Sections 14529.17, 14529.19, and 14529.23 to the
Government Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 872, Alquist.  Transportation:  regional and local project
funds:  allocation and transfer.
   Existing law authorizes a local agency to enter into an agreement
with the appropriate transportation planning agency, the California
Transportation Commission, and the Department of Transportation to
use its own funds to develop, purchase right-of-way, and construct a
project within its jurisdiction if the project is included in the
adopted state transportation improvement program and funded from
specified sources.  The department is required to reimburse the local
agency for the amount expended pursuant to the agreement from funds
allocated by the commission for the project in the year it was
scheduled in the state transportation improvement program, as
specified.
   This bill would authorize a regional or local entity to expend its
own funds for any component of a transportation project within its
jurisdiction that is included in the current fiscal year's state
transportation improvement program and for which the commission has
not made an allocation.  The amount expended would be authorized to
be reimbursed by the state, subject to annual appropriation by the
Legislature, if (1) the commission makes an allocation for, and the
department executes a fund transfer agreement for, the project during
the same fiscal year as when the regional or local expenditure was
made; (2) expenditures made by the regional or local entity are
eligible for reimbursement in accordance with state and federal laws
and procedures; and (3) the regional or local entity complies with
all legal requirements for the project, as specified.
   The bill would require the department and a local or regional
entity to execute an agreement to transfer funds for a project within
90 days from the date on which the commission approves an allocation
for the project, if no deficiencies that require clarification by a
local or regional entity are identified in the preaward audit for the
project and the  project is included in an adopted state
transportation improvement program.
   The bill would require the department, on July 1, 2000, and
annually thereafter, to compile information and report to the
Legislature on the number of projects for which an agreement to
transfer funds was executed and on all projects for which an
agreement was not executed within the period provided and the reasons
therefor, and a description of any actions taken by the department
during the prior fiscal year to streamline, expedite, and simplify
the department's process for executing the specified agreements to
transfer funds.
   The bill would require the department to implement systems that
allow rapid access to funds made available under executed agreements
to transfer funds.  The bill would require the Controller to develop
a system that provides access to those funds by electronic transfer
of funds, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature in enacting this
act to streamline and improve the process for allocating and
transferring funds to regional and local governmental entities for
projects included in the state transportation improvement program.
  SEC. 2.  Section 14529.17 is added to the Government Code, to read:

   14529.17.  (a) A regional or local entity that is the sponsor of,
or is eligible to receive funding for, a project contained in the
state transportation improvement program may expend its own funds for
any component of a transportation project within its jurisdiction
that is included in an adopted state transportation improvement
program and for which the commission has not made an allocation.
   (b) The amount expended under subdivision (a) shall be reimbursed
by the state, subject to annual appropriation by the Legislature, if
all of the following conditions are met:
   (1) The commission makes an allocation for, and the department
executes an agreement to transfer funds for, the project.
   (2) Expenditures made by the regional or local entity are eligible
for reimbursement in accordance with state and federal laws and
procedures.  In the event expenditures made by the regional or local
entity are determined to be ineligible, the state has no obligation
to reimburse those expenditures.
   (3) The regional or local entity complies with all legal
requirements for the project, including, but not limited to,
authorization by the federal government, if required, Section
14520.3, and the requirements of the California Environmental Quality
Act (Division 13 (commencing with Section 21000) of the Public
Resources Code).
   (c) Upon the execution of an agreement with the department to
transfer reimbursement funds for a project described in subdivision
(a), the commission may delay reimbursement pursuant to this section
only if programming or cash-management issues prevent immediate
repayment.
   (d) This section shall be limited to projects advanced for
expenditure by an eligible local or regional entity within the 12
months preceding the date the project would otherwise be allocated
funding by the commission.
   (e) Unless otherwise agreed in advance by the commission and the
department, the funds appropriated for the purposes of reimbursement
under this section shall be federal funds and state matching funds.
  SEC. 3.  Section 14529.19 is added to the Government Code, to read:

   14529.19.  (a) If no deficiencies that require clarification by a
local or regional entity are identified in the preaward audit for a
local or regional project that is included in an adopted state
transportation improvement program, the department and the local or
regional entity shall execute an agreement to transfer funds for the
project within 90 days from the date on which the commission approves
an allocation for the project.
   (b) Notwithstanding Section 7550.5, on July 1, 2000, and annually
thereafter, the department shall compile information and report to
the Legislature on the number of projects for which an agreement to
transfer funds under subdivision (a) was executed and on all projects
for which an agreement was not executed within the period provided
under subdivision (a) and the reasons therefor.  The information
provided by the department shall include a description of any actions
taken by the department during the prior fiscal year to streamline,
expedite, and simplify the department's process for executing the
agreements to transfer funds required under subdivision (a).
  SEC. 4.  Section 14529.23 is added to the Government Code, to read:

   14529.23.  The department shall implement systems that allow rapid
access to funds made available under executed agreements to transfer
funds.  The Controller shall develop a system that provides access
to those funds by electronic transfer of funds.  Upon the development
of that system by the Controller, the department shall utilize that
system to comply with Section 14529.19 to the maximum extent
feasible.
